Many enterprises use project analysis tools and methods to ensure that their projects are completed on time and within budgetary limits. Some project analysis tools track the amount of money spent on a project or the number of hours worked on the project to measure the degree of project completion. However, just because a project manager has already spent half of an allocated budget for a project does not mean that half of the work required for the project has also been completed. If a project manager can compare the amount of work produced for the project against the amount of budget consumed by the project, the project manager can take appropriate corrective actions to address project inefficiencies in an attempt to complete the project on time and within the budget limits.
One project analysis method includes the use of a project plan in which a project manager identifies each executable step planned for the project and assigns an earned value, the value of work done for the project, to each identified step. However, such project analysis methods often prove to be so time-consuming and inefficient that many project managers do not even consider implementing these methods.